Singapore: Oil prices moved higher on Monday as growing unrest in Iran increased concerns about possible disruptions to global crude supplies, even as other supply factors helped limit sharper gains.
Brent crude traded close to 63 dollars a barrel, while US West Texas Intermediate hovered near 59 dollars. The rise was modest, with traders balancing fears linked to Iran against signs that more oil could return to the market from elsewhere.
Protests in Iran have intensified in recent days, driven by economic hardship and political tensions. The unrest has added uncertainty to the outlook for one of the world’s major oil producers. Market participants are closely watching whether the situation could affect oil production, exports, or shipping routes in the region, especially around the Strait of Hormuz, a vital passage for global energy flows.
At the same time, expectations of additional supply have eased some of the pressure on prices. Venezuela is preparing to resume exports of oil that had been restricted under sanctions, raising hopes that millions of barrels could soon reach the market. This prospect has helped calm fears of an immediate supply shortage.
Data also show that oil output from OPEC fell in December, mainly due to lower production in Iran and Venezuela. While this has offered some support to prices, analysts say the overall market remains well supplied.
Adding to the uncertainty, the United States has signaled it may take a tougher stance on foreign investment in Venezuela’s oil sector, which could affect how quickly production there recovers.
Analysts say oil prices are likely to remain volatile in the near term, moving in response to developments in Iran and shifts in global supply. For now, traders appear cautious, waiting to see whether political unrest will translate into real disruptions to oil flows.